FMC Marketing and Merchandising Practice Test

The term that best describes the way prices are explained to consumers is "Price quotation." This refers to the practice of providing clear and specific price information to customers, allowing them to understand the cost of products or services effectively. Price quotations typically include details such as the amount, applicable taxes, any fluctuation based on variables, and terms of the sale, making it easier for consumers to make informed purchasing decisions.

In contrast, rebate, sales frequency, and unit pricing serve different purposes in the realm of pricing strategies. A rebate is a form of sales promotion where part of the price paid is returned to the buyer, thus lowering the overall cost but does not directly explain the price at the point of sale. Sales frequency refers to how often a product is sold over a specific period, which doesn’t convey pricing information. Unit pricing gives the cost per unit of measurement but is a component that aids understanding rather than a comprehensive explanation of the pricing structure itself. Hence, price quotation is specifically focused on conveying the pricing details, making it the most suitable term for describing how prices are explained to consumers.